Which is the best investment for middle class salarised people in India?

Question

There are so many attractive advertsiemensts and e mails comming and divert us and put us in troubdle.Many finance companies giveing atractive interest schemes vanish. In the meantime the salarised middle class man ahve tosave for his/her childrens future.So gie the ebst method of investment.

Answer 1

Without knowing the age, family situation, and long-term financial plans of the individual, it is impossible to give any meaningful advice. One thing is certain though; the bulk of long-term investment must be made outside of India.

Answer 2

You may opt for investment in following safe and attractive return options. 1- National Saving Certificate ( Investment can be done in multiples of Rs 100, 500, 1000, 5000 and 10000 This is 6 and 1/2 years investment with interest ranging from 8.13% to 12.28% PA 2- Public Provident Fund- It is 15 years deposit scheme, Just like SB Account you can deposit any amount any day during the year. Interest rate is also 8.50%. Maximum amount that can be invested in a financial year is Rs 70000

Answer 3

The investment should be broadly in the following four categories


1. Savings for the future(LIC policy is a must)[30 %]

2. Mutual Funds (SIP =Systematic Investment plan is the best route to invest in mutual funds)[40%]

3. Direct Equities investment[15-20%]

4. Investment in gold is a really a good option since it appreciates with time for sure[10-15%]

% - % of your dsiposable income excluding your montlhy expenses.

Apart from LIC , you should also have medical insurance and general insurance to insure your immovable assets.

Answer 4

Investment Planning is the key to sucessful investing. It is a scientific process, which, if done in the right sprit, can help you acheive your financial goals. Here are the basic steps of Investment Planning

Step 1 : Identify your financial needs and goals
The starting point of a sound investment plan is to begin with a clear understanding of you financial needs and goals. Typically, any financial need or goal would translate into determining the tenure of your investment (investment horizon). All investment needs and goals can therefore be translated into short-term (less than 1 year), medium-term (more than 1 year) and long-term (more than 5 years). Here is an example of the financial goal of a typical household (a couple with two childrens).
Financial Goals Expected Cost (at today’s prices in Rs) Time Frame Investment Horizon
Anil’s computer 0.5 Lakhs Next month Short-term
Sunita’s school admission 0.35 Lakhs 6 months Short-term
Vacation 0.5 Lakhs 1-2 years Medium-term
Buying a second car 5 Lakhs 2-3 years Medium-term
Anil’s education 2 Lakhs 10-12 years Long-term
Sunita’s education 2 Lakhs 12-15 years Long-term
Retirement 20 Lakhs 20-25 years Long-term

Step 2 : Understanding investment choices
There are three basic investment categories: Equity, Debt and Cash. Any investment can be classified into one of these three categories, or asset classes. The key to investment success lies in understanding how each asset class performs over the various investment horizons, the choices within each category and the risks involved in making investment decisions in each of these choices.

Equity or Stocks are ownership shares investors buy in a corporation. When you make equity investments, you become part-owner (to the extent of your shareholding) of the company you have invested in. However, there is no particular rate of return indicated while investing. The current value of your holding is reflected in the price at which the stock/share is traded in the stock markets. Hence, these constitute a relatively riskier form of investment.

Debt instruments or Bonds are loans investors make to corporations or the government. They promise a fixed return at the time of making the investment. Also the promise of getting the money back is dependent on who is making the promise. In case of the Government, the promise will certainly get fulfilled, but if the issuer of debt is a company or an institution, the quality of the issuer needs to be adjudged, to ascertain its ability to keep the promise. Debt investments, therefore, provide you with the promise that your principal will be returned along with the interest payable thereon.

Cash includes money in bank savings accounts and other liquid investment options.
Asset Classes Instruments Risk
Cash Savings deposits in a bank, Liquid Mutual funds Low
Debt GOI Relief Bonds, Public Provident Fund, National Savings Certificate, Company Fixed Deposits, Debt-based Mutual funds ,Debentures/Bonds Low to Medium, depending on the type of issuer. In case the issuer is Govt, the risk of default is negligible
Equity Equity-based Mutual Funds Stocks/shares issued by various companies High

Step 3 : Decide an appropriate mix of various investment choices (Asset Allocation Plan)
Making an asset allocation plan is about determining the proportion of investments in each of the three basic asset classes. Essentially this depends upon your profile as an investor. Whatever stage of life you are at, you would need to invest part of your money for security and liquidity. A part of your investments should generate regular income and part of it should contribute to growth and capital appreciation. The proportion however, will vary based on individual goals, time horizons available to meet those goals and one's risk profile (the tolerance reaction to any down turn in the stock/debt markets). The key to investment success lies in determining the appropriate mix of the above mentioned categories and not just the individual investments that are done within each category.

Answer 5

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Answer 6

don't go to finance com. stock is risky game. giving on interst is highly risky but the another way is available for any one including all class that is doing mLm business . Here u invest your part time earn time&money freedom , there is ZERO%risk on your investment .Built everlasting freindship,name&fame visit: www.swadeshimarketing.net
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Answer 7

Invest in the indian classical way, buy physical gold, indian stocks are overvalued.

Answer 8

Real Estate :

Buy small portions in busy commercial area and lease it out to mnc's- ATM's best option.

Rate my suggestion.

[e-mail]

Answer 9

provident fund, debt/ balanced mutual funds, tax saver plans, elss, post office schemes.

decide your goals, don't be greedy, do your homework in the above, and you should be able to meet your children's needs

Answer 10

invest in LIC scheme plans...pls don't go for flashy ads...
always invest in mutual funds...never ever try ur hand in share market...as u will burn ur fingers...